Cat bond news

Global reinsurance firm Hannover Re is continuing to seek out a $100 million source of collateralised retrocessional reinsurance from its new 3264 Re Ltd. (Series 2022-1) catastrophe bond deal, but we’re told that the price guidance has been lifted to above the initial range.

The catastrophe bond sector has become an integral part of the broader risk transfer industry, and according to Cedric Drui, CFA, Managing Director at Neuberger Berman, the cat bond market will see continued growth for years to come.

American Family Mutual Insurance Company is aiming to upsize its latest issuance of a catastrophe bond, with the insurer now seeking $125 million of capital market backed, collateralised reinsurance from its new Four Lakes Re Ltd. (Series 2021-1) multi-peril cat bond issuance.

Capacity to support aggregate retrocessional reinsurance renewals at 1/1 is “extremely scarce” according to analysts at KBW, who after a second day of meetings with Bermudian companies concluded that significant rate increases are going to be required for this segment of the market.

The first catastrophe bond from logistics, warehousing and supply-chain focused real estate owner and investor Prologis, Inc. has now been priced at the top-end of initial guidance, while the issuance size remained at $95 million for the Logistics Re Ltd. (Series 2021-1) cat bond issuance.

Farmers Insurance Group has now secured the slightly upsized $160 million of collateralized reinsurance protection from its first catastrophe bond, with the Topanga Re Ltd. (Series 2021-1) issuance set to provide the Zurich-linked insurer with multi-year aggregate cover across peak perils.

Here are the ten most popular news articles, week ending December 12th 2021, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates or get our email alerts for every article we publish.

After the publication of the latest Intergovernmental Panel on Climate Change (IPCC) report earlier this year in August, the Credit Suisse Insurance Linked Strategies team has analysed its findings on climate trends related to severe weather catastrophes and tried to quantify their impacts on the global insurance, reinsurance and insurance-linked securities (ILS).

Validus, the Bermuda headquartered reinsurance underwriting arm of AIG, has returned to renew its Tailwind catastrophe bond protection, with a $275 million or larger Tailwind Re Ltd. (Series 2022-1) transaction in the market, through which it is seeking a source of aggregate retrocession.

The first catastrophe bond from logistics, warehousing and supply-chain focused real estate owner and investor Prologis, Inc. has seen its pricing guidance tighten towards the upper-end, while the issuance size remains at $95 million for the Logistics Re Ltd. (Series 2021-1) cat bond issuance.